Question 3 ANSWER ALL PARTS OF THE QUESTION 1. Describe two scenarios where the concept of relevant cost is applied and give two examples of the irrelevant cost (5 marks) 2. The traditional incremental budget enables better cost control within firms", discuss the previous statement with giving one example of the main alternative budgets systems that you learned this year. (9 marks) 3. London Manufacturing Limited developed the following standard costs for direct material and direct labour for one of their major products, the 40 litres heavy-duty plastic container. Each container requires the following: Types of Cost Standard quantity Standard price Direct labour 0.2 hours 18 per hour During March, London Manufacturing Limited produced and sold 5,000 containers using 1,300 direct labour hours at an average wage of 17 per hour. Required: Calculate the Direct Labour Rate and Direct Labour efficiency variances. (4 marks) 4. External considerations in performance management can have an impact on how the organization performs and the steps to be taken to improve performance. Required: Explain the need to allow for external considerations in performance management (7 marks) Total: 25 Marks